Waterfront posts net operating profit of P86M in Q1

The Gatchalian-owned Waterfront Philippines Inc. (WPI) reported a net operating profit of P86 million in the first quarter of the year compared with only P1 million a year ago on the back of higher revenues.

Gross operating profit reached P215 million, up 34 percent from P215 million.

WPI said its rooms division registered a 16-percent growth in revenues to P176 million from P152 million while its food and beverage division posted an 11-percent increase in sales to P179 million from P160 million. Company officials attributed the good performance of WPI to continued efforts to aggressively expand its marketing and distribution network, bringing more travel agents and corporate accounts to its fold, as well as its continued improvement of facilities and services.

Last year, WPI spent close to P200 million to complete the first phase of its renovation program which covered the public areas and restaurants of its four first class hotels. This year, the company will spend another P200 million for the continued refurbishment of its guest rooms to further establish its name as the largest Filipino-owned hotel chain in the country.

WPI is the only hotel chain in the country that has a presence in the key cities of the country. In Manila, it operates the Manila Pavilion Hotel and Casino, in Cebu it operates the Waterfront Cebu City Hotel and Casino, the Waterfront Airport Hotel and Casino Mactan, while in Davao it is represented by the Waterfront Insular Hotel Davao.

On the whole, WPI operates close to 1,500 rooms, employs 1,500 employees and has over 41,000 square meters of convention and gaming space. It houses the country’s largest gaming facilities.

WPI is eyeing a 20-percent growth in sales this year, mainly coming from Manila Pavillion and its Cebu hotels.

The group intends to regain the five-star rating of the Pavillion, now classified as a three-star hotel.

Manila Pavillion has its own market niche especially the high-roller Chinese, Japanese and Korean players.

Waterfront acquired 75 percent of Acesite Philippines, then owner and operator of the Manila Pavillion. The Acesite stake was pledged as collateral in exchange for a $5-million loan granted by Equitable PCI Bank Inc. in 1988.

Equitable PCI transferred rights over the mortgaged shares to Waterfront in February 2003 in exchange for $2.06 million after Acesite’s shareholders failed to settle their loan with the bank.